Nintendo’s Wii U Puts Hardware Strategy to the Test – WSJ.com

Like its famous character Super Mario in his latest game, Nintendo Co. is trying to outrun its enemies.

The Japanese videogame pioneer, coming off of its first annual loss in more than three decades, will start selling the Wii U in U.S. stores Sunday—its first home console in six years.

With the new machine, Nintendo is betting it can continue to push pricey hardware in a videogame market where most of the growth has been in software for smartphones and other mobile gadgets.

“The changes that have taken place over the last few years are massive,” said Nintendo President Satoru Iwata in a recent interview. “If we don’t do anything to keep pushing forward, we may see demand shrink as those devices encroach on our space.”

Starting at $299, the Wii U packs high-definition graphics with a 6.2-inch, tabletlike controller that offers a second screen in addition to the television display—a big change from the current generation’s more simple motion-sensing wand.

In packing more technological muscle, Nintendo aims to win over the core gamers who never fully embraced the motion-sensing games of the original Wii.